Nominal Advanced Foreign Economies U.S. Dollar Index
Index 2006=100, Annual
TWEXAFEGSANL • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
116.39
Year-over-Year Change
32.23%
Date Range
1/1/2006 - 1/1/2024
Summary
This annual index tracks the foreign exchange value of the U.S. dollar against a broad group of major currencies, with 2006 set as the baseline year. It provides critical insights into the dollar's international purchasing power and relative strength in global markets.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The index represents a weighted average of foreign exchange rates, reflecting the dollar's comparative value across multiple international currencies. Economists use this metric to assess trade competitiveness, international investment attractiveness, and broader macroeconomic trends.
Methodology
The Federal Reserve calculates this index by aggregating exchange rates with weights based on international trade and financial transaction volumes.
Historical Context
Policymakers and central bankers use this index to inform monetary policy decisions and evaluate the U.S. dollar's global economic positioning.
Key Facts
- Baseline year is 2006, with 100 representing the dollar's value at that time
- Covers a broad range of major international currencies
- Updated annually to reflect changing global economic conditions
FAQs
Q: What does a rising index value indicate?
A: A rising index value suggests the U.S. dollar is strengthening relative to other currencies, potentially making U.S. exports more expensive and imports cheaper.
Q: How is this index different from other currency measures?
A: Unlike bilateral exchange rates, this index provides a comprehensive view by weighing multiple currencies based on their economic significance in global trade.
Q: How often is the data updated?
A: The index is updated annually, providing a consistent long-term perspective on the dollar's international value.
Q: Why is 2006 chosen as the baseline year?
A: 2006 was selected as a representative year for establishing a neutral reference point for currency valuation.
Q: What limitations exist in this index?
A: The index may not capture real-time currency fluctuations and relies on annual aggregation, which can mask short-term market dynamics.
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Citation
U.S. Federal Reserve, Index 2006=100, Annual [TWEXAFEGSANL], retrieved from FRED.
Last Checked: 8/1/2025